Forex Trading - Why Most Traders Cant Accept Big Profits

By: Monica Hendrix

Most forex traders want big profits but they never get them they get small or mediocre profits and lose long term because they simply cannot accept s0ome key facts that are needed to pile up big profits longer term.

The reason trader can't make money and follow a trend is routed in human nature.

The first reason is that traders try so hard to avoid risk they actually create it.

Many traders get excited when they get a profit and the bigger it gets the more nervous they get - every tick in open equity against them causes them inner turmoil and in the end they snatch it or more their stop to close and get clipped out by normal volatility and get a mediocre profit.

What happens next?

The trade goes exactly the way they thought it would and goes on to pile up $3000, $5000 $10,000 or more and there not in despite the fact they thought it would go that way!

The fact is its easy to pick market direction and trends but quite different trading the trends for profit and most traders fail to make big money even from trrends they knew were gfoing to happen and their forex trading strategy never realises its full potential.

The fact is if you look at any forex chart, the big trends last for months and sometimes years and there are big dips in open equity - but if you want to win on the big trades, you have to accept these dips to make the really big profits.

If you are trailing a stop, you need to wait until the trend is well in motion before moving it up and trail it behind normal market volatility - we use a 40 day moving average a lot of the time and although you give a good bit back at the end, if it's a strong trend you can pile up a lot of profit.

If you caught just 50% of all the major trends then you would be very rich and that's a fact.

To hold these trends you need to have inner conviction, based on understanding and confidence which will give you the discipline, to accept dips in equity which will inevitably occur.

You will understand that it's necessary to do this, to catch the really big trends and take it as a consequence of seeking big longer term profits.

Forex trading is risky (don't let anyone tell you otherwise) but trading is all about taking calculated risks at the right time and having the courage of your conviction.

If you can do this you can enjoy long term currency trading success.

Foreign Exchange
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